Evanston committee explores taxing and regulating Delta‑8 products to raise reparations revenue and protect youth

Alex Ruggie, Evanston Corporation Counsel, told the Reparations Committee that Delta‑8 products were not included in Illinois' Cannabis Regulation Act and that municipalities have pursued two main responses: taxation (permitted in home‑rule communities) and regulatory limits to prevent youth exposure, including minimum‑age sales and advertising restrictions.

Ruggie said municipalities have varied in how they collect such taxes — at supplier purchase or at point of sale — and that Delta‑8 products' low unit price can limit revenue but still yield funds. "Delta 8 products tend to be rather inexpensive. So, the tax on them, it likely won't be a huge revenue stream, but it is revenue," Ruggie said. He added that Oak Park recently adopted 21+ purchase rules and packaging restrictions to reduce youth appeal.

Committee members expressed interest in adding a regulatory component to any referral to City Council and raised questions about administrative burdens and who would collect the tax. Council member Harris said staff and finance would need to identify staffing and collection mechanisms before advancing a formal referral. Ruggie described the referral path: a council member must refer the proposal, it would go to referrals committee, then likely to Finance & Budget and back to Council for consideration.

No formal motion was made because the committee lacked a quorum. Members asked staff to draft a referral that could include both a home‑rule tax approach and youth‑protection regulations for committee review at a future meeting.